Here They Come: First US approval for Chinese bank purchase

Not content to simply continuously accrue US dollar balances at their former rate by exporting goods and services to the US in exchange for electronic USD denominated credits at point of entry,  the Chinese leadership has decided to lever up some of these balances and applied for and has been approved to purchase a US bank.

Story at FT here.

This exhibits a new level of zealousness for US dollar balances by the Chinese leadership; as now they will be able to finance some of the goods and equipment that they provide to US consumers and collect not just the purchase price in US dollar balances in payment, but also go after some of the US dollar balances in interest on loans used to finance these imports; a vendor financing scheme conducted on a national level as the Chinese bank that is purchasing the (now former) US bank is 70% owned by the Chinese government.